Illinois General Assembly - Full Text of HB3746
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Full Text of HB3746  99th General Assembly




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1    AN ACT concerning motor vehicles.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2L as follows:
6    (815 ILCS 505/2L)  (from Ch. 121 1/2, par. 262L)
7    Sec. 2L. Used motor vehicles; modification or disclaimer of
8implied warranty of merchantability limited.
9    (a) Any retail sale of a motor vehicle made after the
10effective date of this amendatory Act of the 99th General
11Assembly January 1, 1968 to a consumer by a new motor vehicle
12dealer or used motor vehicle dealer within the meaning of
13Chapter 5 of the Illinois Vehicle Code is made subject to this
15    (b) Any motor vehicle sale conducted by a motor vehicle
16dealer licensed under Section 5-102 of the Illinois Vehicle
17Code or by an auction company at an auction that is open to the
18general public may not exclude, modify, or disclaim the implied
19warranty of merchantability prescribed in Section 2-314 of the
20Uniform Commercial Code or limit the remedies for a breach of
21the warranty before midnight of the 15th calendar day after
22delivery of a used motor vehicle or until a used motor vehicle
23is driven 500 miles after delivery, whichever is earlier. In



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1calculating time under this Section, a day on which the
2warranty is breached and all subsequent days in which the used
3motor vehicle fails to conform with the implied warranty of
4merchantability are excluded. In calculating distance under
5this Section, the miles driven to obtain or in connection with
6the repair, servicing, or testing of a used motor vehicle that
7fails to conform with the implied warranty of merchantability
8are excluded. An attempt to exclude, modify, or disclaim the
9implied warranty of merchantability or to limit the remedies
10for a breach of the warranty in violation of this Section
11renders a purchase agreement voidable at the option of the
13    (c) An implied warranty of merchantability is met if a used
14motor vehicle functions substantially free of a defect that
15significantly limits the use of the used motor vehicle for the
16ordinary purpose of transportation on any public highway. The
17implied warranty of merchantability expires at midnight of the
1815th calendar day after delivery of a used motor vehicle or
19until a used motor vehicle is driven 500 miles after delivery,
20whichever is earlier. In calculating time, a day on which the
21implied warranty of merchantability is breached is excluded and
22all subsequent days in which the used motor vehicle fails to
23conform with the warranty are also excluded. In calculating
24distance, the miles driven to obtain or in connection with the
25repair, servicing, or testing of a used motor vehicle that
26fails to conform with the implied warranty of merchantability



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1are excluded.
2    (d) An implied warranty of merchantability does not extend
3to damage that occurs after the sale of the used motor vehicle
4that results from:
5        (1) off-road use;
6        (2) racing;
7        (3) towing;
8        (4) abuse;
9        (5) misuse;
10        (6) neglect;
11        (7) failure to perform regular maintenance; and
12        (8) failure to maintain adequate oil, coolant, and
13    other required fluids or lubricants.
14    (e) If the implied warranty of merchantability described in
15this Section is breached, the consumer shall give reasonable
16notice to the seller within 15 days after the date of the
17breach. Before the consumer exercises another remedy pursuant
18to Article 2 of the Uniform Commercial Code, the seller shall
19have a reasonable opportunity to repair the used motor vehicle.
20The consumer shall pay one-half of the cost of the first 2
21repairs necessary to bring the used motor vehicle into
22compliance with the warranty. The payments by the consumer are
23limited to a maximum payment of $25 for each repair.
24    (f) The maximum liability of a seller for repairs pursuant
25to this Section is limited to the purchase price paid for the
26used motor vehicle, to be refunded to the consumer or lender,



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1as applicable, in exchange for return of the vehicle.
2    (g) An agreement for the sale of a used motor vehicle by a
3used motor vehicle dealer subject to this Section is voidable
4at the option of the consumer unless it contains on its face
5the following conspicuous statement printed in boldface,
610-point or larger type set off from the body of the agreement:
7    "Illinois law requires that this vehicle will be fit for
8the ordinary purposes for which the vehicle is used for 15 days
9or 500 miles after delivery, whichever is earlier, except with
10regard to particular defects disclosed on the first page of
11this agreement. You (the consumer) will have to pay up to $25
12for each of the first 2 repairs if the warranty is violated.".
13    (h) The inclusion in the agreement of the statement
14prescribed in subsection (g) of this Section does not create an
15express warranty.
16    (i) A consumer of a used motor vehicle may waive the
17implied warranty of merchantability only for a particular
18defect in the vehicle and only if all of the following
19conditions are satisfied:
20        (1) the motor vehicle dealer subject to this Section
21    fully and accurately discloses to the consumer that because
22    of circumstances unusual to the business of the used motor
23    vehicle dealer, the used motor vehicle has a particular
24    defect;
25        (2) the consumer agrees to buy the used motor vehicle
26    after disclosure of the defect; and



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1        (3) before the sale, the consumer indicates agreement
2    to the waiver by signing and dating the following
3    conspicuous statement that is printed on the first page of
4    the sales agreement or on a separate document in boldface
5    10-point or larger type and that is written in the language
6    in which the presentation was made:
7    "Attention consumer: sign here only if the dealer has told
8you that this vehicle has the following problem or problems and
9you agree to buy the vehicle on those terms:
13    (j) A used motor vehicle dealer subject to this Section has
14the burden to prove by a preponderance of the evidence that the
15dealer complied with subsection (i) of this Section.
16    (k) A consumer or seller that is aggrieved by a transaction
17pursuant to this Section and that seeks a legal remedy shall
18pursue an appropriate remedy prescribed in Article 2 of the
19Uniform Commercial Code and shall comply with the requirements
20prescribed in that Article.
21    (l) It shall be an affirmative defense to any claim under
22this Section that:
23        (1) an alleged nonconformity does not substantially
24    impair the use and market value of the motor vehicle;
25        (2) a nonconformity is the result of abuse, neglect, or
26    unauthorized modifications or alterations of the motor



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1    vehicle;
2        (3) a claim by a consumer was not filed in good faith;
3    or
4        (4) any other affirmative defense allowed by law.
5    (m) Other than the 15 day, 500 mile implied warranty of
6merchantability identified herein, a motor vehicle dealer is
7not required to provide any further express or implied
8warranties to a purchasing consumer unless:
9        (1) the motor vehicle dealer is required by federal or
10    State law to provide a further express of implied warranty,
11    or
12        (2) the motor vehicle dealer fully informs and
13    discloses to the consumer that the vehicle is being sold
14    without any further express or implied warranties, other
15    than the 15 day mile implied warranty of merchantability
16    identified in this Section.
17    (n) This Section does not apply to the sale of antique
18vehicles, as defined in the Illinois Vehicle Code, or to
19collector motor vehicles.
20    (a) The dealer is liable to the purchasing consumer for the
21following share of the cost of the repair of Power Train
22components for a period of 30 days from date of delivery,
23unless the repairs have become necessary by abuse, negligence,
24or collision. The burden of establishing that a claim for
25repairs is not within this Section shall be on the selling
26dealer. The dealer's share of such repair costs is:



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1    (1) in the case of a motor vehicle which is not more than 2
2years old, 50%;
3    (2) in the case of a motor vehicle which is 2 or more, but
4less than 3 years old, 25%;
5    (3) in the case of a motor vehicle which is 3 or more, but
6less than 4 years old, 10%; and
7    (4) in the case of a motor vehicle which is 4 or more years
8old, none.
9    (b) Notwithstanding the foregoing, such a dealer and a
10purchasing consumer may negotiate a sale and purchase that is
11not subject to this Section if there is stamped on any purchase
12order, contract, agreement, or other instrument to be signed by
13the consumer as a part of that transaction, in at least
1410-point bold type immediately above the signature line, the
18    (c) As used in this Section, "Power Train components" means
19the engine block, head, all internal engine parts, oil pan and
20gaskets, water pump, intake manifold, transmission, and all
21internal transmission parts, torque converter, drive shaft,
22universal joints, rear axle and all rear axle internal parts,
23and rear wheel bearings.
24    (d) The repair liability means that the dealer will make
25necessary Power Train component repairs in his shop, or in the
26shop of his service affiliate, on the basis of his regular list



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1price charge for parts and labor, where the flat rate list
2price does not exceed 50% of the selling price of the vehicle
3at the time repairs are requested.
4    (e) The age of the vehicle shall be measured according to
5the manufacturer's model year designation as shown on the
6Certificate of Title or Registration Certificate. Vehicles
7shall be designated as current year models, one year old, 2
8year old, and so forth according to the time that has elapsed
9since January 1 of the appropriate model year so designated.
10    (f) This Section does not preclude the issuance of a
11warranty or guarantee by a motor vehicle dealer or motor car
12manufacturer that meets or exceeds the basic provisions of
13paragraph (a).
14    (g) After the effective date of this amendatory Act of
151989, executives' and officials' cars when so advertised shall
16have been used exclusively by executives of the parent motor
17car manufacturer's personnel or by an executive of an
18authorized dealer in the same make of car. These cars, so
19advertised, shall not have been sold to a member of the public
20prior to the appearance of the advertisement.
21    Any person who violates this Section commits an unlawful
22practice within the meaning of this Act.
23(Source: P.A. 86-351; 87-1140.)